Jane Street Group
SEBI shares trade logs with Jane Street amid manipulation probe
The Securities and Exchange Board of India (SEBI) has provided trade logs to Jane Street Group LLC as part of its ongoing investigation into alleged market manipulation. The regulator informed a local court that it shared the trade data it relied on for issuing a preliminary order against the firm, urging Jane Street to respond to the allegations.
Jane Street has been seeking additional documents and internal communications from SEBI to defend itself against the interim order. During Monday’s hearing, the firm’s lawyer argued that SEBI should disclose the trading records used to accuse the company of manipulating index prices and profiting from options trades.
Gaurav Joshi, representing SEBI, stated that the regulator had shared details of the timing, quantity, and pricing of actual trades. However, SEBI has withheld the names and tax identification information of counterparties, saying it did not rely on those records in forming its preliminary findings.
Until the Monday hearing, Jane Street’s legal team had contended that much of the information in the trade logs was redacted, limiting their ability to mount a full defence.
The core of SEBI’s allegation is that Jane Street influenced the pricing of stocks in the NSE Nifty Bank Index, a key benchmark that underpins heavily traded options contracts. The outcome of this dispute may affect how global high-frequency trading firms view regulatory oversight in India’s derivatives market.
The case remains under judicial review, with both parties awaiting further directions from the court on disclosure and next steps in the proceedings.
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